Study: how long does it take for a 10%+ correction to make new highs


The S&P has fallen 11.8% already during this “small correction”. Assuming that the bottom is in already (February 9, 2018 = the bottom), the S&P has rallied for 48 days already. Is this normal? How long does it usually take for a 10%+ “small correction” to reclaim its old highs?
Here are the bottom dates for 10%+ “small corrections”

  1. June 4, 2012
  2. August 16, 2007
  3. February 28, 2000
  4. October 18, 1999
  5. October 28, 1997
  6. April 14, 1997
  7. July 16, 1996
  8. January 30, 1990
  9. September 29, 1986
  10. February 13, 1968
  11. June 29, 1965
  12. October 11, 1955

Here’s how many days it took for the S&P 500 to make a new high.

June 4, 2012

It took 55 days for the S&P to make new highs.

August 16, 2007

It took 35 days for the S&P to make new highs.

February 28, 2000

It took 16 days for the S&P to make new highs.

October 18, 1999

It took 21 days for the S&P to make new highs.

October 28, 1997

It took 26 days for the S&P to make new highs.

April 14, 1997

It took 15 days for the S&P to make new highs.

July 16, 1996

It took 42 days for the S&P to make new highs.

January 30, 1990

It took 82 days for the S&P to make new highs.

September 29, 1986

It took 46 days for the S&P to make new highs.

February 13, 1968

It took 51 days for the S&P to make new highs.

June 29, 1965

It took 60 days for the S&P to make new highs.

October 11, 1955

It took 23 days for the S&P to make new highs.

Conclusion

It has been 48 trading days since the S&P 500 bottomed on February 9, 2018. Provided that the bottom is already in, it can take up to another 2 months before the S&P makes a new high. This means that the S&P should make a new all-time high by the time summer 2018 rolls around.

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